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Wednesday March 26, 3:45 PM
Malaysia's Maybank plans to buy Indonesian bank for 2.7 bln dlrsMalaysia's largest lender Maybank said Wednesday it plans to buy Indonesia's Bank Internasional Indonesia (BII) for 2.7 billion dollars in a bid to expand its operations in the region. Maybank said it has initially agreed to buy a 55.7 percent stake in BII for 1.5 billion dollars from a unit of Singapore state investor Temasek Holdings and South Korea's Kookmin Bank.
"The acquisition will transform our growth prospects in Indonesia and is a huge step forward in our strategy to regionalize our operations," said Maybank's acting chief executive officer Aminuddin Desa. The BII stake was owned by Sorak Financial Holdings, which is 75 percent owned by Temasek's wholly-owned subsidiary Fullerton Financial Holdings and 25 percent by Kookmin Bank. "We are excited as the Indonesian banking sector remains under-penetrated, with excellent long-term growth potential," Aminuddin said. "BII is well placed to capitalise on this growth potential given its strong market position, extensive multi-channel distribution network and high-quality customer base." Analysts said Maybank was paying an big price to make its foray into neighbouring Indonesia's banking industry. "It is a pricey deal and there are a lot of issues with doing business in Indonesia," said TA Securities research head Kaladher Govindan. "They are probably under pressure to expand regionally and there are not many banks available in the region," he said. BII is listed on the Jakarta Stock Exchange and ranks as Indonesia's sixth largest bank. It operates in all major banking segments and has more than 230 branches and 700 ATMs across Indonesia, with Internet banking facilities and call centres. Malaysia's central bank has approved the acquisition but it is still conditional upon regulatory approval from Bank Indonesia and Maybank shareholders.
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